Sina Technologies Zhang Jun
In early 2018, Lei Jun proposedMobile phoneThe goal of returning to first place in China in 10 quarters is still in the ears. However, the domestic market share of millet is still hovering in the fourth place after half of the time.
Internal worries: shipments fell year-on-year for two consecutive quarters
In early May, IDC released global smartphone shipments data for the first quarter of 2009, which showed that millet shipments were 25 million, down 10.2% from a year earlier. Millet once issued an official announcement, pointing directly at the wrong IDC data, saying that the volume of millet shipments in the quarter was less than 27.5 million.
But even so, millet has failed to escape the decline in shipments.
According to the first quarter of 2009 earnings report released by Millet recently, the revenue of smartphone division in that quarter was about 27 billion yuan, up 16.2% from the same period last year. Smartphones sold 27.9 million units this quarter.
Although smartphone revenue grew year-on-year, millet's smartphone sales fell 1.76% year-on-year this quarter. In the fourth quarter of 2018, sales of millet smartphones even declined 12.3% year-on-year.
In a media conference in the fourth quarter of 2018, Millet CFO Weekly explained that the main reason for the decline was that Millet adjusted its mobile phone portfolio in that quarter, focusing on the high-end market. In the fourth quarter of 2018, millet released only two products, one was MIX3 released in October and the other was Play released only in December. Zhou Shengzi believes that millet MIX3 is a high-end product, and the shipment volume will not be particularly large, while millet Play did not show up in the quarter due to its late release.
In an interview at the Millet 9 conference, Lei Jun also disclosed a key message. He said that the sales of millet products in the fourth quarter of 2018 had already accounted for the vast majority in China, not in China.Red rice。
If the decline in the fourth quarter of 2018 is justifiable. But in the first quarter of 2019, millet has split the red rice brand, and released millet 9, MIX3 5G version, millet 9SE three high-end models, and red rice Note 7Pro, red rice Note 7, red rice 7 entry models, but still not out of the decline in sales.
China is the worst hit area for millet smartphone business.
According to the first quarter of 2009 smartphone market data released by Counterpoint, Huami OV occupies the top four, but only millet in the top four has declined year-on-year, up to 21%.
According to Canalys's data on China's smartphone market in the first quarter of 2019, only one of the OVs in Huami is available.HUAWEIThe year-on-year growth was achieved, but the decline rate of millet was 13%, which was the highest among the three households.
In the past two quarters, Mimi mentioned that the focus of smartphone business is also on ASP promotion. From the same year-on-year trend, the ASP of Mimi mobile phone is indeed on the rising trend, but this and the decline in shipments undoubtedly form two difficult contradictions. It will be a test for the follow-up operation of the two brands whether the split red rice can take into account both the increase of shipments and the improvement of ASP.
Foreign Trouble: Double Brands Encroached by Glorious OV
If the adjustment of millet's splitting of red rice is the internal cause of the decline in millet's smartphone shipments, then the competition between glory and OV is the external cause.
Glory has always been millet's old rival. While the millet mobile phone is internationalized, glory also opened the internationalization journey in 2018. At the same time, when Millet is aware of the shortcomings of offline channels and Vigorously opens Millet House to lay out offline channels, on the one hand, the glory of online channels surpasses Millet as the first Internet mobile phone brand, on the other hand, through the light assets model to improve the offline channel layout. Under similar brand and price positioning, glory has undoubtedly been eating into millet market.
This year, the OV will be further ignited.
In February this year, vivo sub-brand iQOO officially appeared. Unlike the previous products of vivo, iQOO mainly focuses on cost-effective, positioning the Internet flagship series, and carries the unique flagship processor of vivo, Miaolong 855. However, millet 9, which was also released in February, was out of stock due to the low quality rate of the lens, which made iQOO available.
Separated red rice brands have also encountered strong rivals. In April this year, OPPO's Realme, which has been focusing on overseas markets, officially announced its return to the Chinese market and launched Realme X series products in May. It is worth noting that with OPPO's supply chain capability, Realme X series will bring Sony's 48 million cameras and lifting full screen directly to the price of 1499 yuan. This adds a lot of pressure to the upcoming Red Rice K20.
China's smartphone market will remain in stock until 5G mobile phones are commercially available on a large scale. This also means that the competition of the four TOP companies, Huami OV, will be zero-sum. In order to achieve its own increment, it is necessary to grab the market from the stock users of other brands. In the current market structure, millet to a certain extent is at a considerable disadvantage.
Can we return to the first place in China?
In 2014, the millet, which was established only four years ago, was the first smartphone in China relying on cost-effective and online channels. However, it suffered a continuous decline in shipments in 2015 and 2016, once falling out of the top five in the world and the fourth in China.
In 2016, Lei Jun personally took over the R&D and hardware of millet mobile phone to solve the supply chain and capacity problems. At the same time, vigorously promote the construction of millet home, make-up courses off-line channels. Lei Jun's personal rescue site, finally let millet return to the growth track in 2017.
The decline since the fourth quarter of 2018 seems to have been familiar. After two quarters of decline, Lei Jun took over the China area himself and rescued the field again.
Although Millet's IoT and Internet business are growing, but the mobile phone business is undoubtedly the basic disc of millet, belonging to the headquarters that can not be lost. That's why Lei Jun shouted in early 2018 that he would return to the first place in China in ten quarters.
Millet has been criticized by the outside world for its low R&D investment and proportion. This also led Huawei Glory and OV to take the lead in taking photos, fingerprints under the screen, elevating cameras and other new technologies, millet products have been in a relatively passive situation.
Millet is gradually investing in R&D and improving its technological innovation system.
According to the data, the overall R&D investment of millet in 2018 was 5.8 billion yuan, an increase of 83.3% over the previous year's 3.2 billion yuan, and the R&D cost of millet in the first quarter of 2019 reached 1.7 billion yuan, an increase of 50% over the previous year. In terms of technical system, millet set up the Group Technical Committee in February this year. At the internal meeting, Lei Jun even emphasized that it is vital for millet's survival to continue to strengthen technology.
Technology is related to product competitiveness, and channel is another important factor in sales.
The construction of millet home has been fruitful, and many types of millet ecological chain have contributed a lot to improving the efficiency of its offline stores. However, the low profit of millet mobile phones has become the biggest obstacle for the offline dealers to sell millet mobile phones. The new retail system is still the key factor for further straightening out millet in 2019.
After three years, Lei Jun came out again. Can we continue to create miracles this time? Rub one's eyes and wait.